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FedEx is falling after cutting its full year earnings forecast for a third consecutive quarter. Loop Capital is downgrading the stock after earnings to sell from hold. The analyst writes that the near-term outlook for the company isn't positive as the company faces macro risks including tariffs. And the firm also says with economists increasing recession risk that FedEx is not a good recession stock. Shares down 9%.

Yeah, this is one, you know, FedEx along with UPS are viewed as economic bellwethers, and they are very economically sensitive, and that is something that the company now is having to contend with here. So earnings per share this year are now going to be $18 to $18.60, $18.95 is what analysts had been estimating, and as you mentioned, this is not the first time they've cut the forecast. It's been happening here. They said revenue could be down slightly this year versus last year. And I thought Rick Patterson's note from Loop Capital was indeed interesting here. He said, like it or not, FedEx's brand is synonymous with global trade. So that's one issue, and he said, um, FedEx has thin Express margins and its Express business amplify the earnings hit whenever there's pressure on the top line, like if there is a recession, for example. So he says, hopefully, it won't come to that, but still, he's cutting his rating on that to a sell, and the price target is now $221. And the company was asked by the way about tariffs directly on the call, and kind of said we're going to manage around it, we're going to be as nimble as we can. Interestingly, they did not say they saw a pull forward effect. In other words, there's been this thinking that a lot of um businesses are pre-ordering a lot of inventory to try to get ahead of the tariffs. Um, and they said on the call there was only one customer that did that noticeably, and then they didn't like that they got stuck with all that inventory. So that's kind of interesting, but they kind of emphasized that they're going to try and be nimble with the tariffs and help their customers manage through it. So it's a, like so many things right now, it's kind of a wait and see situation.

Yeah, and it certainly impacted the guidance for the full year. I believe they brought that now to a range of $18 for the full year, the fiscal year. Uh top side, I think is $18.60. Yeah.

Yeah. Exactly.

All right. So we're going to be watching FedEx very closely to see if they can hit on some of these markers. Julie, thanks so much.

Yeah. Good to be here.